Revenue stands at S$125.1 million, down 1.8% from the same period the year before

 

[SINGAPORE] The distribution per stapled security (DPS) for CDL Hospitality Trusts (CDLHT) : J85 -2.94% fell 21.1 per cent to S$0.0198 for the first half ended Jun 30, from S$0.0251 in the previous corresponding period.

 

This comes as the total distribution to stapled security holders fell 20.2 per cent to S$25.1 million from S$31.4 million in the H1 of last year.

 

Net property income (NPI) fell 11.9 per cent to S$58.6 million for H1 2025, from S$66.5 million in the previous corresponding period.

 

Its S$7.9 million net NPI decline was largely driven by ongoing room renovations at the W Singapore - Sentosa Cove, which accounted for a S$3.2 million drop. These renovations are set to be completed by early 2026.

 

Revenue declined 1.8 per cent to S$125.1 million after most portfolio markets outside the UK, Japan and Australia performed worse, the trust&rsquo s managers said on Wednesday (Jul 30).

 

Revenue per available room (RevPar) came in mixed across the stapled group&rsquo s portfolio. Its Singapore, New Zealand, Maldives, UK and Italy markets logged declines, while its Australia, Japan, and Germany markets experienced growth. 

 

The group&rsquo s core Singapore market NPI fell 20.9 per cent to S$30.2 million, from S$38.3 million in H1 of the 2024 financial year. This came alongside lower RevPar, which fell 14.2 per cent to S$165 from S$193. Occupancy for the Singapore hotels was down 5.2 percentage points at 73.2 per cent for the latest H1, from 78.4 per cent previously. 

 

The RevPar for CDLHT&rsquo s Singapore hotels was weighed down by a strong base effect when compared with the previous year&rsquo s H1, when there was strong demand from large-scale events. It was also affected by subdued corporate demand, owing to global and economic uncertainties and exacerbated by tariff concerns, said the managers. They added that room renovations at W Singapore also played a part in the drop.

 

The declines for the Singapore portfolio came despite visitor arrivals to the city-state   rising 1.9 per cent in H1 2025 from the year-ago period to 8.3 million.

 

As at Jun 30, CDLHT&rsquo s gearing stood at 42 per cent.

 

Poised to benefit from more favourable rates

CDLHT is poised to benefit from a potentially more favourable rate environment due to its &ldquo low fixed to floating debt profile&rdquo and &ldquo interest rate hedging strategy&rdquo , said Vincent Yeo, chief executive officer of CDLHT&rsquo s managers.

 

&ldquo Capital recycling remains an integral part of our strategy to unlock value and reinforce portfolio resilience,&rdquo he added.